Jim Scott will enter a guilty plea in federal court March 6.
In his plea agreement, Scott, founder of "Scotty's Contracting and Stone," admits filing false federal income tax returns in 1994, '95, and '96.
Although he told WBKO in October of 2004 he'd be found innocent, Scott now admits unlawfully deducting personal expenses for building his home, as expenses incurred by his business.
The IRS says Scott owes them $1,217, 277.
The maximum penalty Scott faces is 12 years in prison, but the U.S. attorney's office says it will recommend a sentence of 15 months at Scott's sentencing.